Victorian Government could still face massive bill to axe East West Link

The Victorian Government could reportedly still face a massive compensation bill for dumping the East West Link project.

Key members of the group that signed the contract to build the Link are demanding at least $1.2 billion to walk away from the plans, according to a report in the Herald Sun this morning.

Premier Daniel Andrews, whose plan to scrap the project was a key element of his successful election campaign, was adamant at the time that there would be no requirement to pay compensation.

"Be very clear about this: there will be no compensation paid," he reportedly said four days before the election.

He also said he had received a "whole raft of legal advice" before instructing the consortium to stop work on the tunnel.

The push for the $1.2 billion compensation is reportedly being led by banks and superannuation funds that financed the deal.

Construction giant Lend Lease, which won part of the contract for the controversial $6.8 billion build, is reportedly asking for a smaller amount of compensation - believed to be in the hundreds of millions of dollars.